After remaining around 100-104PKR per $1, on 5th july the dollar has peak to 108.1 against Pakistani rupee which shows a major decline in PKR value. According to media reports the dollar was suddenly on the rise as political situation is peaking up to JIT decision but expert financial analyst says that political situation currently is not a major driving force that can impact inter market. The matter of fact is that Government has taken so much loans to sustain the PKR value, now when its time to pay back those loans with interest rates the PKR suddenly dropped.
The PKR was on its lowest in last Government when its value was 110 against the dollar. The current PLMN government vowed to keep the dollar at $100 mainly depending on foreign aid specially from US. Now when most of aid and loans are already paid in various periods the dollar was steady and stable.
The Government must have to act hard to sustain or bring back the value of PKR. Its hard for them to do so in current circumstances when Government is mostly busy in JIT and political rivalries. The Pakistan stock market has shuffled alot in past 48 hours with brokers and investors losing their interest and were cautious in participating actively at stock level.
More will updated as it comes……